Review
I am very happy with the CDx3 method. I used to put my longer term money into CD’s and government agency debt. Now I buy preferred stocks from the CDx3 Bargain Table. It’s a perfect fit! –Carl Jensen, Futures TraderI’m doing super with the CDx3 system.
The Third Edition of Preferred Stock Investing shows you how to screen, buy and sell the highest quality preferred stocks to earn above average dividend income while creating multiple downstream capital gain opportunitie…
Buy PREFERRED STOCK INVESTING – Third Edition at Amazon
This is a good book but reader needs to be careful about the risk
involved in preferred stock investing. Half of the purchases made
by the author in 2006 was not sold yet, and as of Apr 27, these shares
are down on average about 15% in market value. Even if you count the
9-10% in dividends that had been paid, you are probably still 5-6%
underwater. One of the purchases is CFC-B, which went from 25 to 6
at one point only to come back to 14 as of Apr 27. I am not sure
if the average reader would have the stomach to withstand this kind
of draw down. Since many preferred stocks were issued by finance
companies, I suspect purchase made by the author prior to Aug 2007
may suffer even heavier paper losses.
Reader who buy this book with the expectation of getting 12% return
with very little risk and retire needs to be realistic
I have many stock trading systems that returned on avg of 30% for 6-7
years in back testing before Aug 2007 but are down 40% since then.
I would like to see more discussion on the risk of perferred stocks,
how they would perform in bankrupcy and liquidation, etc. Readers
also should not blindly follow rating agency’s ratings.
Thorburg mortgage’s preferred stocks went public last year with a 10%
coupon, and the price dropped from $25 all the way below $2 and has
come back to over $4 recently. I heard that Pimco’s Bill Gross
bought some of those preferred below $2. It would be interesting to
understand how he analyzed the risk of TMA’s preferred and made the
call.
Several things struck me about Preferred Stock Investing. Doug K. Le Du’s writing style leaves you feeling like you’re reading something from an old friend. The book is very comfortable to read and easy to understand. But the most remarkable part is how frequently I found myself feeling like “ah hah, of course this would work this way.” Unlike many other investment books that I’ve read, it is really clear how and why the preferred stock investment method that is described in the book would work, with very little effort. And all of the preferred stocks for years listed in the book too so you don’t have to take it on blind faith; the book includes the investment results, using the method that the book describes. In the beginning of the book, the author says that if you are a high-risk taking day trader looking for a quick 25% return, this book is not for you; this is correct. This book is for low-risk, methodical investors who do not want to spend a lot of time studying their computer all the time. I learn a lot and it was fun to read.
4.0 out of 5 stars
Preferred Stock Investing
The author presents his plan for investing in “quality” preferred stocks. He receives income from the dividends, and there is a likelihood of capital gains at a certain point in…
This well written book offers an entirely new approach to investing in preferred stocks (PS), an approach that will maximize your profits while minimizing your risk and minimizing your work effort. PSs are recommended for your investment considertion ONLY IF they meet 10 strict market and investment criteria. If a PS meets ALL 10 criteria, they pass the test to qualify as a “CDX3” stock. Well-written and precise guidelines are then given on how and when to buy “CDX3” stocks, even when market interest rates rise or fall. The author includes over 5-years of historical market results to document & support his approach. The monthly free newsletter to subscribers is an outstanding source of investing information. Highly recommend this book!
5.0 out of 5 stars
Valuation of Preferred Stocks with CDx3
CDx3 Preferred Stock Investing is the only recent book on investing environments and valuing preferred stocks.
5.0 out of 5 stars
Preferred Stock Investing
I had already started in on investing in preferred stocks as a way of guaranteeing a steady dividend income for someone approaching retirement without some of the dramatic…
3.0 out of 5 stars
Misleading
The title of this book indicates it is a general discussion of preferred stock investing. Instead it is about the author’s system for investing in preferred with preferred stocks.
5.0 out of 5 stars
Winning System
I thought the book was excellent and so did two of my friends that read it. We started following Doug’s system and think it’s the best to come along in a long time.
5.0 out of 5 stars
Make 3 times CD Returns Using Preferred Stocks
I bought this book while looking for some investment ideas that could augment the pitiful returns we are now getting on safe cash-like instruments like CD’s.
4.0 out of 5 stars
Interesting Investment Concept
Very interesting read and some good ideas. Time will tell how the system works.
5.0 out of 5 stars
PREFERRED STOCK INVESTING by Doug, K. Le Du
I have no hesitation in giving this book a 5 Star rating.
This book is an invaluable resource to any active investor.
5.0 out of 5 stars
Excellent book on a little known area of the investment world
I picked up Doug Le Du’s book to learn about preferred stock investing…an area of the investing world that is not well understood, in my opinion, by the average individual…
5.0 out of 5 stars
Well worth the time and money!
I’ve purchased three copies of this book: first one for me, and then after I started following the CDx3 method, one for my financial advisor, and one for my Dad.